Merchant Company purchased property for a building site. The costs associated with the property were: What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
A)$187,700 to Land; $19,000 to Building.
B)$200,700 to Land; $6,000 to Building.
C)$200,000 to Land; $6,700 to Building.
D)$185,000 to Land; $21,700 to Building.
E)$206,700 to Land; $0 to Building.

Question

Merchant Company purchased property for a building site. The costs associated with the property were:  What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
A)$187,700 to Land; $19,000 to Building. 
B)$200,700 to Land; $6,000 to Building. 
C)$200,000 to Land; $6,700 to Building. 
D)$185,000 to Land; $21,700 to Building. 
E)$206,700 to Land; $0 to Building.

Quizplus · Accepted Answer

The Answer of Merchant Company purchased property for a building site. The costs associated with the property were:  What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
A)$187,700 to Land; $19,000 to Building. 
B)$200,700 to Land; $6,000 to Building. 
C)$200,000 to Land; $6,700 to Building. 
D)$185,000 to Land; $21,700 to Building. 
E)$206,700 to Land; $0 to Building.

Merchant Company Purchased Property for a Building Site